Bitcoin and Ethereum have faced significant price drops over the past nine days. While traders are showing signs of fear, one indicator shows that a significant recovery is underway.
TD Sequential signals “buy” for Bitcoin and Ethereum
As we have reported as , the Tom Demark (TD) Sequential indicator, which previously gave 20 signals for Bitcoin and cryptocurrencies, gave a buy signal on the 12-hour chart of both Bitcoin and Ethereum. The bullish pattern comes after both cryptocurrencies have had their market valuations plummet since Nov. Now, TD predicts that BTC and ETH could enter the bullish zone one to four times on the 12-hour candlestick chart before the downtrend resumes.
An increase in buying pressure that pushes Bitcoin above $58,500 could send prices from $60,000, the 100 twelve-hour moving average, according to analysis by Ali Martinez. A sustained 12-hour close above the resistance level could extend the recovery to $62,300, the 50 twelve-hour moving average. Similarly, Ethereum must surpass the $4,300 resistance level to move forward with its 50 twelve-hour moving average to $4,500. Martinez says that if ETH breaks this hurdle, it could rally to $4,653.
On the other hand, the analyst states that Bitcoin and Ethereum should stay above their respective lows to avoid further losses. According to Martinez, if BTC drops below $55,600 and ETH loses $3,960 as support; The downtrend could continue and BTC could drop to $52,000 while ETH could drop to $3,700.